SCG unit forms alliance with Nippon Paper
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SCG Paper has formed a strategic alliance with Japan-based Nippon Paper Industries Co (NPI) to help develop its fibrous chain business.
“This partnership between SCG Paper and NPI will create an effective synergistic platform that enhances the production efficiency, new product development, marketing and sales network,” Kan Trakulhoon, president and chief executive of Siam Cement Group, said yesterday.
“This is in line with SCG’s strategic focusing on the development of high-value-added products and services to become an Asean sustainable-business leader,” he said at the signing of an agreement for NPI to take a 30-per-cent stake in the business.
Subject to terms and conditions to be agreed upon in the joint-venture agreement, the transaction is expected to close by the second quarter of next year.
SCG Paper’s integrated fibrous chain comprises forestry, pulp (470,000 tonnes per year), and printing and writing paper (570,000 tonnes per year). Revenues from the business amounted to Bt17 billion in fiscal 2012 and Bt8.5 billion in the first half of this year. The business contributes 30 per cent of the company’s consolidated revenues.
NPI is a leading paper manufacturer with leading-edge technology and an established distribution network across Asia. In its last fiscal year ended March, NPI had assets of Bt470 billion and sales of Bt320 billion. Its businesses include pulp, printing and writing paper, speciality paper, energy, and biochemical products.
NPI and SCG Paper’s Bt2.2 billion, 43,000-tonnes-per-year machine-glazed-paper plant is under construction and is expected to start up in the middle of next year.
